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Do you ever wonder why people get paid to make videos on YouTube? YouTube has a great platform, being the new television in this day and age. It has grown and still is continually growing. In this episode, Nate Woodbury will talk about the money-making strategies via YouTube.
Can you really make money posting videos on YouTube? And if so, why? -Yeah, that’s actually a pretty common question. Why do people get paid for making videos? -Let’s answer it. -We’re going to answer that today. -Alright. So, the question comes up. Here Nate Woodbury along with Scott Christopher. Or Scott Christopher along with Nate Woodbury. This is Nate Woodbury’s channel, so I’m really just… I’ve just jumped over and guessed. -You just wanted to say our names a few times. -It’s just that top of mind awareness you know, you always say the person’s name. How you doing Nate? Nice to see you Nate? How are things Nate? Alright, talking about… I love when people call me Chris. Yeah, so making money on YouTube. It seems like you know, we talk about it’s such a foregone conclusion. And some people out there asking why? Why is it a foregone conclusion? Put them on for the world to see and get paid for it? -Yeah. I mean this is a real question on Quora. -Actual question. -Why do YouTubers get paid at all for making videos? So, the first thing that I thought of was, just to compare it to to television, right? There’s people that have a career that make movies or make TV shows. Why do they get paid? -Why do they get paid? Because there’s advertisers. -I mean, you’re an actor. -Yeah. -You can… There’s that, yeah. Paint the picture like… -Well, really. I mean, so the answer on anything is it’s all about advertising dollars. It really just is. Everybody’s trying to sell something. And in order for people to become aware of that something, they need to be exposed to it somehow. And so what advertisers are looking for are for the people that have the most viewers in any form or any format, in any medium. Newspaper, how many people read your newspaper. Television, how many people are watching your show? You’ve got to be able to create content that draws people readers, viewers, listeners to podcasts or whatever. And the more that you build up, the more that Florida orange juice comes to you and says, “We think you have a lot of people who would like our orange juice. Can we put an ad on your or…?” -Or Pharmaceuticals. They they tend to like to put advertising…(Laughs) -That’s true.Well, they have money. -I don’t see commercial television very often. Because I use Netflix or whatever. But when I do see a commercial, it always seems to be about some pill. -But you bring up a good point. -You don’t use television, you don’t watch. You don’t need to anymore. And that’s the beauty of this question is that… Well, the advertisers say, “Well, where did everybody go?” -Sorry, the camera just died over here. -One of those those cameras. You won’t be able to see Nate’s good looking face up close for the rest of this video. Where are they going? They’re going to YouTube. They’re watching things online. They’re watching things on Netflix. Netflix of course is more of a subscriber based revenue stream. But YouTube isn’t. Because it’s free to subscribe. -So, I have a question for our viewer here. Have you ever seen a commercial on YouTube? -You probably just saw one. -Yeah, you probably just saw one. And it’s not just that, that it’s advertising that YouTube puts on there. And YouTube’s making a lot of money. But YouTube actually created a partner program. -That’s what’s cool. -Very, very cool. In fact, that they give away 55% of the advertising dollars to the creator of the video. -So, you as the Creator are the majority stockholder (So to speak) in this little arrangement. You know, you’re the senior partner with 55%. -So, an advertiser… If you just watched a commercial before this video, hopefully it was a good one. You know, maybe something reputable like Wix.com. -Atleast the first 5 seconds, yeah. -So, let’s say Wix.com… That’d be cool of it… -Yeah because make your own website. -I’ve seen there’s a lot on YouTube. So, they paid YouTube and then you watch the video. And then, I know it’s just one view, but then 55% of that payment for that view would then come to us. -Because you’re the content producer. And that’s you know, that really that’s fair. You’re the one that’s making something that made you watch. And so, yeah. YouTube, even though it’s their platform, it’s their idea, it’s their world. They’re saying, “We can live off of forty five percent of 27 bajillion content producers ads. -Now, the reality is the amount that we just made from this one view, the commercial went before, is a Fraction of a fraction of a cent. You know, something like that. -Right. -But it all adds up, you know? And you know, just… I’ll be transparent. I do make 7 figures, that’ll be cool. Okay, I just slipped out. -Seven? -Six. I make six figures. I want to be accurate. I make six figures from Adsense revenue. -Yeah. -Combined of all the channels that I’m a part of. -Because they will that… -It was realistic. -We’ll talk about that later offline. -Okay, 7 figures. I’m just… That’s a future thought. I’ll pick a bit next year. I’ll be able to say, 7 figures. -Well, why not? You get a few more clients and you. you know. yeah. That’s good. So, that’s why. Thanks for coming, buh bye. -Okay, we’ve got a couple other ones actually make money. So, I’ve talked you about Patreon before. You remember patreon? Yes. So, patreon is a way that… And this is going to sound crazy. But fans that like your videos can just donate. -Oh, that’s right. Yeah, yeah. Like the guy who did the atoms, that the molecule, the… -That’s actually… -Wasn’t that patreon? -That was Kickstarter.
-Oh, okay. So, I’ll give you an example. And that’s another one we could share as well. There’s a family, they’ve vlog. They live in an RV full-time. It’s a family of 3. So, just a small family. But they live in an RV and they travel around living in national parks. Right now they’re up in Alaska. They’re real cool family. I’ve actually met them and interviewed them about how to make a career on YouTube and whatnot. That you can link to that video right up there. But they have an account on a website called patreon. Where people who like their adventures, they like the work that they put into their episodes. And want to contribute. They say, “I really enjoy watching your episodes. I learn about these national parks, I learn about our being, something that I want to eventually get into. And I like your advice. I’m going to donate a dollar per episode.” So, they just donate or it might say, “I’ll donate $5 per month.” Or “I’ll donate $5 per episode.” Maybe it’s your grandmother really wants to contribute. Or maybe they’re just a raving fan. And there’s different perks that you can give. You know, if you contribute $10 per episode then we’ll put your name in the credits. And you know, so there’s… -Now let me ask you this. Now, somebody has a million subscribers. Which is a ton of subscribers. Or they get a million views regularly on their videos. It would seem like if they were to do patreon, it would seem almost like piling on like, it isn’t not enough enough for you? And this again, this is just me from my simpleton perspective. -Well… -It’s like patreon would, for someone like me who has a hundred and fifty subscribers might be a good way to supplement and to help keep my videos coming. Because I’m… I don’t already have the built in six figures off of Adsense revenue coming in. But I still want to make these videos. And if my 150 people really like them, I could say, “Gosh, if you to just donate something. Even a 150 of you, might help me to stay.” I mean, is that kind of what it’s for? -I fully understand the question. So, it’s definitely is a great. Because I would go, “Hey, hey RV people. Hey, hey, settle down. Aren’t you making enough off of all the other things you’re making?” You know what I mean? -So, in their case, they don’t have millions of subscribers yet. But let me tell you another channel that (-Oh they don’t.) doing really well. -Oh. -There’s a channel that, there’s a couple that live on a yacht. And they travel the world in a yacht. Can I know that they’re making over $10,000 per episode on using patreon. So, people are just donating money to them over $10,000 per episode. And that’s on top of their adsense revenue. Now, why would people do that? -That’s the question. –Why? Why are they doing it? -They offer some pretty awesome perks. Okay, so their videos are fun. I enjoy them. -Right. I’m a fan. I don’t like their thumbnails because it’s always a scantily, it’s a bikini. I’m just going to say. -But they’re… -Well, you like them, you just don’t want to like them. Anyway, keep going. -Anyway, I totally, I really enjoyed their.. -You know you shouldn’t like one. -At the beginning, I was really interested in like, “One day, I want to get into the yacht lifestyle. And that’d be so cool. I could just travel around for a year.” But as I see all the work that they go through. And how they haven’t actually have to work every single day. I’m alike… And then the limitations of water. And how they have to do… That’s like you know what? -Here just take my… I’ll go on a cruise for a week and I’ll be… So, they have a lot of perks, now I’m not. I’m not a patron hopefully. If they’re watching this video they’re not offended. That I’m not a paying patron on patreon. But people that are, they’ll do a drawing and people that win that drawing usually it’s like five at a time. Will get to meet when they’re in Florida what not. Hey, we’re in Florida, we’re going to have a get-together, you’re going to come out with us and spend a few days with us on our yacht. So, that’s a perk. They give out beer mugs, they give up t-shirts and stuff with their logo on it as perks to people that are patrons. When I say beer mugs it’s like the cooler thing that the can goes in. -Oh, yeah, yeah. A little… -Whatever. -The little cooler warmer fuzzy rubbery thing. -Anyway. So they have to have different perks. They also release special videos just to the audience of patrons. So, they’re an insider. They call them, “Hey, become part of our crew.” And they’ll get stuff early, they’ll get early releases, they’ll get unique content. So, anyway, there’s just some additional perks. That’s why, that’s why people do it. They want those additional… -But what about other ways to make money. I mean, you say, why do people make money? These are some reasons right? -But then there’s just their own ingenuity. There’s their own… Yeah and I’ve… For the sake of this video, I’ve put it all in one big category of business. You can use YouTube in a big way to promote your business. -Now, that’s why I make videos. I mean, in these videos I have a business that I run. It’s Be the Hero Studios. And I don’t blatantly advertise or talk about, “Hey, this is what my services are.” I don’t give sales pitches. But sometimes at the end of the videos I say, “Hey, if you want more information, you can find it out on my website.” And we do that on all the channels that I manage. And we get a significant amount of traffic. Even from just saying that at the very end. They go to the website. I’ve got I’ve got one channel that’s generating 4,000 leads per month. Which those leads translate into sales. Which is generating multiple six figures per month. -Okay, we need to start doing that on mine. I haven’t done that at all. -We’ll get there. We’re just getting started. -You’re right. I think we sent him over to my site where I’m a public speaker. -That’s the plan. Why would you do it if you didn’t have like a… I mean, -Exactly. -Yeah. -Exactly, really.
-So, the question is, “Why do YouTubers get at all for making videos?” Well, why else would they make videos, right? I mean, there’s some channels they’re just people are goofing around. But if you’re going to make videos every single day or you’re going to put a lot of investment of time and money into making the videos, well that’s why. It’s because it’s a career. This is my career, YouTube. -The ones that are making money are deliberately making money. In other words, they’re deliberately making choices, making plans, thinking things through. They’re treating it as a business. And you know, they might have people that work with them that aren’t on camera. Or that are behind the scenes that are helping to develop content and bring new ideas. Somebody’s got to take care of all these patreon things and other streams of revenue. It may not be the actual yachtsman. But maybe he has someone who’s part of his business that’s taking care of that for them, I imagine. Because if they’re out in the middle of the Cape Horn or whatever and he’s, “Honey, we got a code.” I don’t even know what I’m talking about. But somebody’s got to do that. You know what I mean? Like not them. -And the interesting thing just as a side note on that channel. Uhm, they don’t have good internet. They have like an emergency satellite phone. And when they’re out on the water. But to upload their videos, they’ve got to go to a port or whatever. Find an internet cafe or something and even with slow internet speed, leave their laptop there. Often times overnight while their video uploads to YouTube. Come back the next morning. -See, that’s a lot of… That is more work. And by the way, Cape Horn is not a body of water. I just realized. It’s a Cape. But they’re out of that water that’s around Cape Horn, whatever that is. The Tasmanian ocean? I don’t know. -I don’t know what he’s talking about. (Scott laughs) We’re running two concurrent conversations here. -So let us know in the comments below. Was this video helpful? Was it… Should we be making money off of this video? I thought was really… What are we doing? If you didn’t like it then we’ll see you back here tomorrow.